Rates

Mortgage rates are the easiest way to compare the offers given by different lenders. Luckily, we have access to the best rates in the industry along with special promos that the general public does not know about. However, relying only on rates is tricky. If a homeowner bases their mortgage decisions solely on rates, they may lose the bigger picture. Banks know that a promotional rate will attract traffic, so they aggressively use it as a tool to compete. Banks are also aware that most borrowers are not educated enough in reading the fine print, and they use this to their advantage.

Contrary to what most of us may think, banks and lenders do not make their money out of the interest earned. Sometimes the promotional rates that banks offer are so low that when deducting an inflation rate of 2%, the bank actually loses on the mortgage. So, now the question is: how do the lenders make money? It is by structuring the mortgage in a way that borrowers pay a high dollar amount if they break the mortgage mid-term. It’s a known statistic that although most Canadians take a 5-year term mortgage, the average time of holding a mortgage is only 3.7 years. This means that most borrowers do break the mortgage in the middle of their term. Another piece of statistics is that 67% of Canadian break the mortgage and pay very high penalties. Why do most borrowers break their mortgage? Change of location, change of income, changes in the family, and opportunities in a growing market to save money and have a bigger house are all probable reasons to break. While a better rate will save you $13/m for each 100K borrowed, a better choice in penalty can save you $20,000. The big money is in the penalty and other terms that are translated to flexibility and overall money saved. The story behind each mortgage plan is sophisticated and complex, and representing it through only rates is neglecting the power of penalties and the fine print.

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Reviews

We are very happy with Jacob’s services! He is patient to make sure we understand mortgage components and also accommodating if we have any questions or requests. Not only he found us a great mortgage rate but also recommended a financial advisor who helped us in many ways as well.read more

Where the banks can't help, Jacob and Rinat came in and with great valuable advice and excellent service they managed to get us what we needed. I highly recommend using their services when looking for a mortgage.

Jacob is amazing, thank you so much for all your work. The only one who were able to meet our mortgage needs. We are so very happy and grateful for all you have done for our family and will recommend you to all our friends.
Great service, professional, resourceful and very knowledgeable.
Elena Podgornyread more

I had the pleasure of working with Jacob and his team for the refinance of my my condo in Richmond. He definitely exceeded my expectations with his professionalism and better than expected results with the offer I received. He takes the time to update you regularly and is available anytime you need to get in touch with him. I highly recommend his services and would definitely contact him in the future for any of my financing. 5 Stars Plus!!read more

Excellent service! We feel confident to send our clients to the Mortgage Sneg Mortgage Team, because we know that purchase will go smoothly and stress free. The Sneg Team not only provides our clients with the best possible mortgage solution, but also gives them extremely thoughtful investment advise that will lead them to prosperity and wealth in the future.
Full Service Investment Real Estate Teamread more

Jacob and Rinat were very helpful in guiding us through the process of getting our first mortgage. We had a very tight timeline to find a provider so unfortunately we were not able to have any discussion on different options and rates available to us. However any questions and concerns that we had were responded to very quickly. We are confident that they will continue to look after us throughout our mortgage term.read more